Big Summer Shutdowns Loom for U.S. Auto Plants as Sales Sputter

[jpak]

Source: Bloomberg

Auto workers may be getting some extra time off around Independence Day, but they won’t be celebrating. They’ll know it means sales are weak and that profits -- and profit-sharing checks -- could be shrinking.

Manufacturers used to shut plants for a week or two in July for maintenance and to keep inventories in check. As sales boomed in recent years, most factories cranked out cars without a break. This summer, widespread closures may be back, and for weeks longer than before. The reason: four straight months of declining sales and little expectation the trend will reverse anytime soon.

It’s probably not what President Donald Trump wants to hear. He has admonished Ford Motor Co., General Motors Co. and Toyota Motor Corp. for building factories in Mexico and demanded more U.S. jobs be created, taking credit for some new investments in the U.S. that had been long in the planning.

“You see what’s going on with the car companies,” Trump said in an interview Monday with Bloomberg News. “They’re all talking about building in the United States because of me.”

<more>

Read more: https://www.bloomberg.com/news/articles/2017-05-03/big-summer-shutdowns-loom-for-u-s-auto-plants-as-sales-sputter

[nikibatts]

1. Are we tired of winning yet?

[bucolic_frolic]

2. The Late Prosperous Boomer Wave has shot its wad

on SUVs, McMansions, travel, vacations .... those industries now to follow
the early wave of declining spending from the not-so-prosperous boomers
and X and Y crowd in retail.

It's pure demographics with a kick from real American wallet issues like
diminished retirement cash flows, the shredding of the safety net, state
tax increases, inflation that is invisible, food costs, and most of all

FEAR from the 45 Administration .... people are pumping their money into
politics from worry

[Historic NY]

3. Now most American's know that this happens mostly every year....

its called time to retool and revamp for the new model year. Some years it longer some years shorter. You don't keep producing old models when you have enough inventory. A few years ago GM closed for 10 weeks, Ford shorten their scheduled closure another year. Donald Trump is not in the driver seat and just regurgitating his bullshit doesn't make it so. GM just pulled completely out of Venezuela, they had been paying employees to do nothing since 2000 over a couple of dealer initiated lawsuits. Unable to maintain parts supplies and government interference & unrest they closed the doors forever. (I expect Trump to claim it was because of him)

I was into my dealer this past week and saw a new model Buicks on the floor

http://www.freep.com/story/money/cars/general-motors/2017/05/02/gm-venezuela-plant/101206288/

Note Ford got out in 2015.

[left-of-center2012]

4. Trump will take credit for giving them more 'vacation time'. n/t

[kimbutgar]

5. I was thinking of replacing my 2003 car with 125,000 miles but with the election of chump

Am going to resist putting myself in any debt. I suspect a lot of other people feel that way. With them talking about undoing financial regulations and consumer protections I am even more leery.

[7962]

8. you've got another 100k left in her! nt

[MichMan]

6. The workers will be looking forward to it

Between unemployment and sub pay the big 3 workers will receive 74% of their regular wage and have weeks off during the summer.

I have worked for suppliers for most of my life. Everytime we had volunteer layoffs, people were demanding to be laid off first based on having high seniority.

[7962]

7. Had to happen eventually. A LOT of cars have been sold over the past 6 yrs

Now they have to cycle thru in age to be replaced. People like me dont help, i'll drive one till the wheels fall off